Fintech giants Envestnet and Orion said they were cutting jobs but provided few details, including how many positions were affected.
"Keep in mind that this all stems from an organizational imperative to be more tightly connected, aligned and cohesive in how we work," Eric Jones, head of corporate communications for Envestnet, told ThinkAdvisor by email on Monday.
"As we noted during our last earnings call, we signaled the conclusion of our investment cycle, and we are transitioning to a normalized expense and operational environment in order to meet our goals for margin expansion and cash flow," Jones said. "Given macroeconomic headwinds, this requires maintaining a disciplined approach to managing our expenses and optimizing operational efficiency companywide."
He added: "With this in mind, we made the difficult decision to eliminate certain positions. These are deliberate steps to continue to deliver value to shareholders and customers given the current market conditions and our significant goals for the future."
WealthManagement.com reported Friday that it received the text of a leaked internal memo from Envestnet CEO Bill Crager that it said, citing "sources," was distributed early Thursday morning, warning staff about the coming layoffs.
"We have made some very difficult decisions," Crager's memo read. "These decisions are not taken lightly, and I acknowledge the personal impact they have. These decisions are necessary to sustain the amazing work we do, and the value we deliver for our stakeholders."
"As an ongoing part of this process, we are eliminating certain positions across the company," the memo went on to say. "We are providing support during this transitional period to impacted employees."
Envestnet was "not sharing the memo as it was intended for internal audiences only," Jones said, declining to provide additional details of the cuts.
Orion Layoffs
News of Orion's job cuts was reported Friday by Citywire.
